You put money into an account that earns a 5 percent nominal interest rate. The inflation rate is 2 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest?
a. 3.6 percent.
b. 2.4 percent.
c. 2.0 percent.
d. 4.4 percent.
c
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Fiscal policy involves ________
A) taxes and government spending B) setting interest rates C) controlling the amount of money in the economy D) all of the above E) none of the above
In principle, prorationing could lead to more efficient extraction of oil from the ground
Indicate whether the statement is true or false
Reasons why a corporation could choose to produce in another country include all of the following except
a. lower labor costs b. avoid overseas transportation costs c. limited liability d. circumvent tariffs e. lower resource costs
A cost or benefit resulting from some activity that is imposed or bestowed on third parties is
A. a public good. B. logrolling. C. a market failure. D. an externality.